Tips on auto financing if you have poor credit

In this Wednesday, May 8, 2013, file photo, a row of new 2013 Ford Fusions are on display at an automobile dealership in Zelienople, Pa. As the auto industry strives to sustain its post-recession comeback, car companies are resorting to tactics that some experts warn will lead to trouble down the road.
(Photo:
AP
)

• Buy a lower-priced car or a used car with a shorter payoff period. Paying it off will help you get a lower interest rate on your next car.

• Don't be fooled by the payment on a loan that's six years or longer. Look at the interest rate, which could be double or more what borrowers with good credit can get. It will take years for you to build any equity in your car.

• Don't buy a car until you pay down other debts and improve your credit rating.

• Try to save for a bigger down payment. This could get you a lower interest rate.

Bankrate.com offers an auto loan calculator that can help figure your monthly payment (http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx ). The site also has an interactive calculator to help buyers decide between a new or used vehicle (http://www.bankrate.com/calculators/auto/new-or-used-car.aspx).